Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Senex Energy Limited (ASX:SXY)
Senex Energy Limited explores, develops, and produces oil and gas resources in Australia. The company provides employment to 137 people and with the market cap of AUD A$506.54M, it falls under the small-cap group.
SXY’s projected future profit growth is an exceptional 89.80%, with an underlying triple-digit growth from its revenues expected over the upcoming years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 10.73%. SXY ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add SXY to your portfolio? Have a browse through its key fundamentals here.
Praemium Limited (ASX:PPS)
Praemium Limited provides portfolio administration, investment platforms, and financial planning tools to the wealth management industry worldwide. Started in 2001, and now led by CEO Michael Ohanessian, the company currently employs 215 people and with the market cap of AUD A$249.89M, it falls under the small-cap category.
An outstanding doubling of earnings is forecasted for PPS, driven by an underlying sales growth of 42.12% over the next few years. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of PPS, it does not appear extreme. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 35.19%. PPS’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about PPS? Take a look at its other fundamentals here.
buyMyplace.com.au Limited (ASX:BMP)
buyMyplace.com.au Limited provides online real estate services in Australia. buyMyplace.com.au was founded in 2007 and with the market cap of AUD A$12.87M, it falls under the small-cap category.
Extreme optimism for BMP, as market analysts projected an outstanding earnings growth rate of 86.91% for the stock, supported by an equally strong sales. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. BMP’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in BMP? Check out its fundamental factors here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.